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Vaughn, Inc. sold 12,000 units last year for $40.00 each. Variable costs per unit were $8.00 for direct materials, 18.00 for direct labor and $2.00

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Vaughn, Inc. sold 12,000 units last year for $40.00 each. Variable costs per unit were $8.00 for direct materials, 18.00 for direct labor and $2.00 for variable overhead. Fixed costs were $34.000 in manufacturing overhead and $21000 in nonmanufacturing costs. a. What is the total contribution margin? b. What is the unit contribution margin? Unit Contribution Margin What is the contribution margin ratio? Eribution Margin Ratio % c. What is the contribution margin ratio? Mari Rabi % d. If sales increase by 4,000 units, by how much will profits increase? Profits Increase

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